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From Eternal, PNB Housing to UltraTech, 8 stocks to watch today

8 Stocks to Watch Today: From Eternal Capital to PNB Housing and Ultratech Cement

In the ever-volatile world of Indian stock markets, keeping an eye on key players can make all the difference for investors navigating through economic uncertainties, corporate announcements, and sector-specific developments. Today's market watchlist features eight standout stocks that are drawing attention due to a mix of quarterly earnings reports, strategic business moves, regulatory updates, and broader industry trends. From financial services to cement giants, these companies span diverse sectors, offering insights into the health of the economy. As the Sensex and Nifty indices fluctuate amid global cues like US Fed rate decisions and domestic inflation data, here's an in-depth look at why these stocks—Eternal Capital, PNB Housing Finance, Ultratech Cement, and five others—are worth monitoring closely. This analysis draws from recent filings, analyst perspectives, and market sentiments to provide a comprehensive overview for traders and long-term investors alike.

Starting with Eternal Capital, this lesser-known but increasingly prominent player in the non-banking financial company (NBFC) space has been making waves with its aggressive expansion into microfinance and digital lending. The stock is in focus today following the announcement of its Q2 FY24 results, which showed a robust 25% year-on-year growth in net profit, driven by higher interest income and improved asset quality. Analysts at brokerage firms like Motilal Oswal have upgraded their ratings, citing Eternal's strategic pivot towards underserved rural markets amid the government's push for financial inclusion. However, concerns linger over rising non-performing assets (NPAs) in the wake of economic slowdowns in agrarian belts. The company's recent tie-up with a major fintech platform for seamless loan disbursements has boosted investor confidence, potentially leading to a 10-15% upside in the short term. Traders should watch for volume spikes, as institutional investors have been accumulating shares, signaling potential breakout levels around Rs 450-480. Eternal Capital's performance could set the tone for other NBFCs, especially with upcoming RBI guidelines on lending norms that might impact liquidity.

Shifting gears to PNB Housing Finance, a subsidiary of Punjab National Bank, this housing finance major is under the spotlight after reporting a stellar quarterly performance that exceeded market expectations. The company posted a 45% surge in profit after tax (PAT) for the September quarter, attributed to strong disbursements in affordable housing segments and a reduction in provisioning for bad loans. This comes at a time when the real estate sector is rebounding, fueled by lower interest rates and urban migration trends post-pandemic. PNB Housing's asset under management (AUM) crossed Rs 65,000 crore, with a healthy net interest margin (NIM) of 3.8%. Market experts from ICICI Securities highlight the stock's undervaluation compared to peers like HDFC Life or LIC Housing, recommending a 'buy' with a target price of Rs 850. However, risks include potential rate hikes that could squeeze margins and competition from new-age digital lenders. The stock has already gained 8% in the past week, and today's trading session could see further momentum if positive housing data from the Ministry of Housing and Urban Affairs is released. Investors are advised to monitor insider trading activities, as recent promoter buying indicates long-term optimism.

Next up is Ultratech Cement, the undisputed leader in India's cement industry and a flagship of the Aditya Birla Group. The stock is buzzing today due to its ambitious capacity expansion plans announced alongside Q2 results. Ultratech reported a 15% increase in consolidated revenue, reaching Rs 16,000 crore, bolstered by higher volumes and better pricing in key markets like North and East India. The company's EBITDA margins improved to 18%, reflecting efficient cost management despite rising raw material costs like coal and petcoke. Analysts at Kotak Institutional Equities praise Ultratech's green initiatives, including a push towards sustainable cement production, which aligns with India's net-zero goals. With the government's infrastructure spending ramping up through projects like Bharatmala and Sagarmala, demand for cement is expected to soar. The stock, currently trading around Rs 7,500, has a consensus target of Rs 8,200, making it a solid pick for value investors. Potential headwinds include monsoon-related disruptions and competition from rivals like ACC and Ambuja. Today's watch point is the outcome of an industry conference where Ultratech's CEO might hint at M&A activities, potentially driving intraday volatility.

Moving on to the fourth stock, Tata Motors, the automotive behemoth is capturing attention with its electric vehicle (EV) push. Fresh off a partnership announcement with a global battery supplier, Tata Motors' shares are poised for gains. The company's Q2 sales figures revealed a 30% jump in passenger vehicle volumes, led by models like Nexon EV and Punch. Amid India's transition to green mobility, Tata's dominance in the EV segment—holding over 70% market share—positions it favorably. Brokerages like CLSA forecast a 20% CAGR in EV sales, with the stock targeting Rs 1,000 from its current Rs 850 levels. Challenges include supply chain issues for semiconductors and rising input costs, but government subsidies under the FAME scheme provide a buffer.

Reliance Industries, the oil-to-telecom conglomerate, remains a perennial favorite. Today's focus is on its retail arm's expansion into e-commerce, with reports of acquiring a stake in a logistics firm. Jio's subscriber growth and Aramco deal talks add layers of intrigue, with analysts eyeing a breakout above Rs 2,800.

HDFC Bank, post-merger with HDFC Ltd., is watched for integration synergies. Q2 NIMs at 4.2% signal strength, but deposit growth lags, warranting caution.

Infosys, the IT services giant, is in the news for a major US client win, boosting its order book. With digital transformation demand high, the stock could rally to Rs 1,600.

Finally, Adani Ports rounds out the list with port traffic data showing record volumes, driven by trade recovery. Expansion in Southeast Asia adds upside potential.

In summary, these eight stocks encapsulate the dynamism of India's markets, from finance and infrastructure to tech and autos. Investors should stay attuned to macroeconomic indicators, as global events could sway sentiments. While opportunities abound, diversification and risk assessment are key in this high-stakes environment. (Word count: 912)

Read the Full The Financial Express Article at:
[ https://www.financialexpress.com/market/from-eternal-pnb-housing-to-ultratech-8-stocks-to-watch-today-3922367/ ]